Question
On September 1, Year 1, Gomez Company collected $12,600 in advance from a customer for services to be provided over a one-year period beginning on
On September 1, Year 1, Gomez Company collected $12,600 in advance from a customer for services to be provided over a one-year period beginning on that date. How much revenue would Gomez Company report related to this contract on its income statement for the year ended December 31, Year 1? How much would the company report as net cash flows from operating activities for Year 1?
| $12,600; $12,600 | ||
| $4200; $4200 | ||
| $0; $12,600 | ||
| $4200; $12,600 |
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Integrated Audit Practice Case
Authors: David S. Kerr, Randal J. Elder, Alvin A. Arens
7th Edition
0912503688, 978-0912503684
